A New Economic Paradigm

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A New Economic Paradigm

The financial crisis of 2008-09 may have occurred a decade ago, but we are still dealing with the repercussions today, including a global populism wave. The crisis has also led to the demise of economists’ unwavering belief in market efficiency that had guided economic policy for decades. Marcel Fratzscher, Moritz Schularick, Ottmar Edenhofer, Simon Tilford, Sebastian Dullien are among the many prominent economists in this Forum arguing that a new paradigm is urgently needed with new policies to address today’s pressing issues, such as growing inequality, climate change and rising trade protectionism.

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Additional Highlights from the Current Issue

The Federal Job Guarantee

How do we eliminate unemployment altogether? William Darity Jr. and Darrick Hamilton propose implementing a federal job guarantee in the US in order to ensure that every American who wants to work has access to a high quality job with a decent living wage and the sense of dignity that comes with it.

Myths and Facts About Inequality

Germany’s social market economy has aimed at spreading wealth and providing a broad social safety net for all groups of society for the last seven decades. Yet a defining feature of Germany’s new economy has been the sharp increase in inequality. Marcel Fratzscher examines the failures of the old economic paradigm and explores new ways to address inequality, in particular in the face of rapid technological change and globalisation.

ECB: Quo Vadis?

The European Central Bank has implemented a very ambitious monetary policy since the financial crisis of 2008, intervening heavily in the eurozone economies. This policy has generated substantial risks to both the ECB’s primary task and its independence. Sylvester C. W. Eijffinger and Lex H. Hoogduin recommend a fundamental evaluation of the ECB’s monetary policy strategy.

From the Next Issue

Forum: The Nordic Model of Economic Policy

with articles by Roberto Iacono, Jonathan Perraton, Elise Brezis and more

The Unifying Role of the Single Currency

by László Andor

The Impact of the Duration of the MFF

by Ákos Kengyel

Quote of the Month

The eurozone crisis is as much a tale of excess bank leverage and poor risk management in the core as of excess consumption and wasteful investment in the periphery.